XDC Hits 3-Year High: Will the Uptrend Continue?

XDC’s remarkable 22% surge, hitting a 39-month high, reflects a mix of technical momentum and strong fundamental catalysts. The move was primarily driven by the announcement of a new partnership with PillarX, an account abstraction platform. This collaboration aims to integrate XDC into PillarX’s ecosystem, enhancing Web3 capabilities and improving transaction efficiency and usability for users. Moreover, this partnership is seen as a strategic step in boosting XDC’s role in tokenizing real-world assets (RWAs), an area where the XDC Network is already making significant strides.

XDC is positioning itself as a leading player in the RWA market, where it has partnered with Archax, a regulated digital securities exchange. This focus on real-world asset tokenization is expected to bolster XDC’s credibility and appeal, especially among institutional investors. As a result, it currently holds the second-largest market share in RWA tokenization, trailing behind only Mantra, a larger competitor in this space.

The recent rally also coincides with a broader bullish sentiment in the cryptocurrency market, partly driven by Bitcoin’s price recovery, as well as the favorable inflation data released by the Bureau of Labor Statistics. The positive market conditions have shifted the Crypto Fear and Greed Index to a “Greed” sentiment, suggesting increased risk-taking behavior, which could further support XDC’s rally.

XDC’s technical indicators also suggest a bullish continuation in the near term. The Moving Average Convergence Divergence (MACD) is indicating upward momentum, while the Supertrend indicator supports a bullish outlook by remaining below the price. The asset is trading above its 50-day and 200-day moving averages, which typically signals sustained buying pressure. Furthermore, both the MACD and signal line are aligned upwards, reinforcing the potential for further gains.

However, despite these optimistic signs, caution is warranted. XDC’s price is nearing overbought territory as its Relative Strength Index (RSI) approaches high levels, while the price is also nearing the upper band of the Bollinger Bands, which could signal a short-term pullback. Additionally, the increased flow of tokens to exchanges—$3.06 million worth in the past day—could be a sign that traders are preparing to cash out or rotate into other assets. This kind of activity often precedes a correction, especially if retail traders decide to sell into the rally.

In conclusion, while XDC’s bullish outlook remains intact, potential pullbacks or consolidation periods are possible due to technical indicators signaling overbought conditions. If the rally persists, XDC could target a new all-time high, with some analysts predicting a 39% increase, bringing its price closer to $0.19. However, investors should be mindful of possible corrections in the short term, especially if market conditions change or if profit-taking begins.